Q1 Financial Reports: Pfizer's Mature Products Segment Grows by 1%, Novo Nordisk China Up 9%

Source: GBIHealth

U.S. pharmaceutical giant Pfizer and Danish pharmaceutical company Novo Nordisk recently released their financial reports for the first quarter (Q1) of 2019. The reports indicated that both companies had a strong start, showing varying degrees of growth trends.

Pfizer: Upjohn, the Mature Medicines Division, Grew by 1%

Pfizer’s Q1 financial report shows that the company’s global sales revenue reached $13.118 billion, a year-on-year increase of 5%. The Upjohn division, which focuses on off-patent branded drugs and generic medicines as part of Pfizer’s global established pharmaceuticals business, generated $3.1 billion in revenue during the quarter, representing a 1% year-on-year growth.

Pfizer’s leadership team is based in China. The division focuses on marketing 20 off-patent branded and generic medicines across 65 markets, including the United States and Europe, and is currently building dedicated production, sales, and regulatory teams to enhance the flexibility and efficiency of its operations. Its product portfolio includes blockbuster drugs such as Lyrica (pregabalin), Lipitor (atorvastatin), Norvasc (amlodipine), Viagra (sildenafil), and Celebrex (celecoxib).

Pfizer Chief Financial Officer (CFO) Frank D'Amelio pointed out that the growth of the Upjohn business was “mainly driven by strong value-driven operational growth in the Chinese market (primarily from Lipitor, Norvasc, and Celebrex), which propelled a 25% increase in operational revenue in emerging markets.” The growth in new markets also offset the losses caused by a 9% decline in operational business in developed markets.

During the earnings conference call, Pfizer CEO Albert Bourla was asked whether Upjohn would be spun off into a new company. Bourla stated that spinning off Upjohn was a “possibility,” but emphasized that the company’s current “focus is on ensuring this business operates effectively.” He also noted that the Chinese market is filled with “opportunities and challenges.” According to the press release, Pfizer anticipates navigating headwinds from China’s “drug price reforms,” which is one of the factors behind the company’s decision to maintain its full-year growth guidance unchanged. In the 2018 “4+7” city-based volume-based drug procurement program, Pfizer’s Lipitor and Norvasc were excluded due to their excessively high bids.

However, Dr. Albert Bourla, CEO of Pfizer, emphasized that Upjohn’s performance this year may experience negative growth due to the expiration of Lyrica’s patent in the United States on June 30, 2019. But once the revenue loss from Lyrica is absorbed, Dr. Bourla expects Upjohn’s sales revenue and future strong profits to “stabilize at low single-digit growth” starting in 2020.

Novo Nordisk’s Sales in China Rose 9% to DKK 3.375 Billion

Novo Nordisk, the Dominant Player in the Diabetes Field, Reports Q1 2019 Financial Results: The company’s global sales reached DKK 29.3 billion (USD 4.35 billion), representing a 4% year-on-year increase at constant exchange rates. Benefiting from strong performance across all regions, international market sales also achieved a 13% year-on-year growth. Notably, the China market generated sales of DKK 3.375 billion (approximately USD 506 million) in this quarter, reflecting a 9% year-on-year increase at constant exchange rates.

In terms of product sales performance, insulin sales in the Chinese market grew by 9%. Among these, long-acting basal insulin NovoPen (insulin detemir) saw the fastest growth, with quarterly revenue reaching DKK 256 million (USD 38.37 million), a 24% increase; followed by rapid-acting insulin aspart, whose sales rose 22% to DKK 461 million (USD 69 million); Novolin premixed insulin sales increased year-on-year by 10% to DKK 1.112 billion (USD 166.7 million). However, human insulin sales declined by 3% to DKK 797 million (USD 119.5 million). Notably, Novo Nordisk’s GLP-1 agonist Victoza (liraglutide) surged by 90%, reaching DKK 214 million (USD 32 million).